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Elijah Lee
06 Dec 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Jonathan Chia Guangrong
06 Dec 2019
SOC at Local FI
Depends on your original intention when you bought the stock. Did you intend to hold it forever or there are exit conditions? Need to ask yourself this before you enter.
For me for example, I was clear when I went to buy Aims APAC on margin. Collect the dividend and sell off the stock once it hits one year's worth of dividend on paper.
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Hi there,
just want to share with you my personal experiece.
i invested in padini in year 2012 at a price MYR0.88. (yes the apparal company, padini)
and i sold it 1 year later with a 20% gain. which is not bad for a new investor back then.
but looking back, if i hold the the stock until today, i could have made 15x my capital!! inclduing both capital gain and dividend!!
Damn!!
i know its hindsight for me to say i could have made 15x return. but most important is what i've learn in this experience, and i hope to share with community here, so everyone can also learn from my experience.
looking back, i asked myself what's the reason of selling. i sold because i want to take profit! is not becasue the company cannot grow anymore... is not because their dividends came down.. in fact in grew,..
i sold because i want to take profit!! and honestly, i dont need that money urgently that time.
because of short term greed and fear, i miss out whole lot!!
lesson here: many thought that long term investing is about, not selling after buying... because Warren Buffett famously said his favourite holding period is forever.... but did you know Warren Buffett also sell his stock?
is not that we dont sell... or Warren Buffett dont sell... truth is we choose not to sell...
dont sell, and choosing not to sell is 2 different thing altogether....
true investor prefer to hold the stocks for long because of compounding return (look at my padini!!)... we choose to sell because business fundamental deteriorate...
if you ever find yourself sell a stock because you just want to take profit.... that to me, is a bad investment decision. :)
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Wong Ming Yao
06 Dec 2019
Product and Community Associate at 8VIC Global Pte Ltd
I know 'it depends' sounds cliche, but it really comes down to your personal game plan regarding the stock market.
If you are going in for the long term to compound your money: Sell when the stock is overvalued, not when the stock prices has shot up.
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Yes, only if you think it is overvalued based on your financial metrics or what you think the future...
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If the share has good fundamentals, then I would sell into the rally and stay invested.
If the price continues to climb, then I would sell into the rally again.
If eventually I recover all my capital, then honestly, it's all profit at this point and I wouldn't worry too much about it.
A good stock is one that you hold on to forever. However, a stock may not stay good forever. So monitoring and reviewing your portfolio is part of the game.